Explanation for CHESS, ACH, HIN and Sponsor

[eggnog]

I'm having trouble getting my head arround these concepts. Could someone explain in laymans terms how these things fit together when purchasing shares, what are their roles.


Also, am trying to open Options trading through my e*trade account. However, got stump on the last form to fill out "Registered Holder Collateral Cover Authorisation". What is this form about. Who is the Registered Holder, HIN and ACH Participant's Name.

 

[wagnman]

Yeh!

Good question mate.

I too would love to start to buy into some shares to build a share port folio over the course of my life but I have not spent the time to learn how to get involved in share market investment.

Surely it must be pretty simple (forgetting about all the details of how to pick what to buy).

I would like to know the basics of "how to buy shares".

What accounts do you need and what the answers to the questions in the above post are.

 

[The Y-man]

http://www.asx.com.au/investor/shares/how/chess_faq.htm

Cheers,

The Y-man

 

[The Y-man]

Surely it must be pretty simple (forgetting about all the details of how to pick what to buy).

I would like to know the basics of "how to buy shares".

Basically open an account with a broker.... eg. www.comsec.com.au


Cheers,

The Y-man

 

[The Y-man]

Also, am trying to open Options trading through my e*trade account. However, got stump on the last form to fill out "Registered Holder Collateral Cover Authorisation". What is this form about. Who is the Registered Holder, HIN and ACH Participant's Name.

What level of options trading are you applying for? eg. will you writing naked calls/puts etc?

The form seems to be asking about in the case of you offering shares as collateral (security) for an option trade (as opposed to cash), who will the shares be owned by (i.e. your self or margin lender), and/or who the "sponsor" (just think of this as fancy name for "broker") is.
Best that you call e*trade and ask them how to fill in each box. I they won't help you, tell them you are going somewhere else

Cheers,

The Y-man